Property Developers
Property development is a complex and dynamic field. Whether you’re developing residential, commercial, or industrial properties, we provide tailored financing solutions to meet the unique needs of property developers. At My Finance Consultants, we specialise in providing fast and reliable finance solutions for property developers. Our team has extensive experience in structuring development loans and sourcing highly competitive rates. We support you through every phase of your project, ensuring you have the funds needed to complete your development successfully.
Supporting property developers
Our services for property developers include:
Project Feasibility Analysis: We help you assess the financial viability of your project, including detailed cost and revenue projections.
Tailored Loan Structures: We create customised loan structures to fit the specific requirements of your development project.
Access to Diverse Lenders: With connections to a wide range of lenders, we secure the best possible terms for your financing needs.
Equity and Joint Venture Funding: We assist in sourcing equity partners and structuring joint ventures to provide additional funding and share project risks.
Development finance options
We offer a variety of finance options to cater to different development stages and project types:
Land Acquisition Loans: Secure funding to purchase land for your development project.
Construction Loans: Finance the construction phase with flexible terms and drawdown schedules.
Mezzanine Finance: Access additional funding through mezzanine finance, bridging the gap between senior debt and equity.
Bridge Loans: Obtain short-term finance to cover immediate expenses while waiting for long-term funding to be arranged.
Pre-Sales Finance: Leverage pre-sales contracts to secure additional funding before project completion.
Key considerations for developers
Successful property development requires careful planning and consideration of various factors:
Market Analysis: Understand current market trends and demand for your type of development.
Regulatory Compliance: Ensure your project meets all local planning and building regulations.
Risk Management: Identify and mitigate potential risks associated with your development.
Financial Planning: Create detailed budgets and cash flow forecasts to manage project finances effectively.
Leverage our expertise
Leverage our extensive knowledge and industry connections to provide comprehensive support for property developers. Our goal is to make the financing process as smooth and efficient as possible, allowing you to focus on the successful completion of your project. Ready to start your next property development project? Contact My Finance Consultants today to discuss your financing needs and discover how we can help you achieve your development goals. Whether you are a seasoned developer or embarking on your first project, we provide the expertise and resources to support your success.
Why choose My Finance Consultants?
We do all of the legwork
We compare hundreds of home loan options from a wide choice of lenders, including the big banks and specialist lenders. We handle every step, having a thorough process in place to qualify you with our lender panel to find the most suitable lending options for you. We organise all of the required paperwork, order lender valuations, liaise with your real estate agent and conveyancer for a smooth transition to settlement.
We provide a convenient service
Mortgage Brokers save you the time and hassle involved in applying for a home loan - from application through to settlement. We'll meet at a time and place that best suits you, to establish your needs and preferences. We then do all the research and running around to manage every step of the application process. This saves you shopping around - as we do it all on your behalf.
We provide professional advice
We are fully trained, and accredited with every lender we represent. We are full members of the Mortgage & Finance Association of Australia and we have many years of industry experience. We also have a number of consumer protection initiatives in place to protect you - our valued clients. As mortgage professionals, we seek to guide you through the lending process to help you make better financial decisions.
We help you select the right home loan
Our first priority is helping you select the home loan that’s right for you, now and into the future. Your Mortgage Broker will save you the time and hassle associated with shopping around for a home loan, they will also guide you through the home lending process to help you make better choices with your personal finances.
We will always try to save you money
We use comprehensive software which helps us pinpoint the most suitable and competitive home loan for you. Typically, our service can help cut the current interest rate you are paying as well as reduce your fees and monthly repayments. Using a Mortgage Broker is also a great way to figure out a strategy to maximise your borrowing power.
We don’t charge you a fee for our service
There is no charge to you for our services because the lender pays us a commission once your loan has settled. We do charge a commitment fee for home loan pre-approval applications, however we will refund this to you upon settlement of your home loan. We will always aim to provide a trusted, friendly and professional mortgage broking service.
Our clients have been saying some great things about us!
Whatever your goals, a competitive commercial loan will get you there faster!
Whether you're developing residential or commercial projects, expanding your existing business, or wanting to better manage your cashflow, we can help you make the right decisions and stay on top - whatever your commercial lending needs.
We'll compare more than 40 leading banks and lenders, as well as hundreds of commercial loan options to find one that's right for you. No matter what kind of lending solution you're interested in, you'll enjoy expert lending advice from a Mortgage Broker you can trust.
Our industry knowledge and sophisticated mortgage software allows us to assess and compare the hundreds of commercial loans that are available in the marketplace, we will calculate your borrowing capacity and identify which lenders you will qualify with.
If you're ready to start your commercial loan journey, give our friendly team a call on 1300 381 955 or visit the Book Appointment section on our website.
FAQs
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Property development is the process of identifying opportunities, creating value, and generating financial returns through transforming land or existing buildings. It can involve:
- Purchasing land and constructing new buildings
- Buying buildings to renovate or remodel and then selling them
- Improving existing properties for personal use or sale
The process includes activities such as market research, site acquisition, planning and design, financing, construction management, marketing, and sales or leasing. Success in property development requires vision, experience, and a focus on delivering results.
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Successful property developers should possess several essential skills, including:
- Organisation Skills
- Understanding of Construction and Design Principles
- Decision-Making Skills
- Negotiation and Communication Skills
- Knowledge of Real Estate Market Trends and Regulations
- Financial and Business Skills
- Problem-Solving Skills
Developing these skills is critical for identifying opportunities, managing projects, and generating financial returns in property development.
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The typical process includes:
Site Identification and Feasibility Study: Assessing zoning, size, location, market demand, and financial viability.
Securing Financing: Ensuring sufficient funds to cover all project costs.
Design Process: Creating a detailed design that meets stakeholders' requirements and complies with regulations.
Construction: Managing the construction process, obtaining permits, and ensuring project completion within budget and quality standards.
Marketing and Sales/Leasing: Realising a return on investment by selling or leasing the developed property.
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The general rule of thumb is that the project return (Profit/Total cost) should be no less than 25%, and return on equity (Profit/Equity Invested) should be no less than 60%.
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Our recommendation is to prepare to approach the bank after you have the following in place:
- Development Application (DA)
- Finalised builder costing
- Finalised feasibility
- Desired level of presale
- Draft Quantity Surveyor report completed (must be on the lender's panel)
- Draft Valuation report completed (must be on the lender’s panel)
- Clear strategy on how to fund potential shortfalls
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The short answer is no, you do not. This is made possible by structuring projects as partial build to sell and partial build to hold. However, this depends on the nature of the project in terms of rental return, profitability margins, and the financial strength of the developer.
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Yes. This is one of the areas where banks tend to give very little flexibility. The builder is tasked with the delivery of the build, the most critical and riskiest part of the project from a bank’s perspective. If the bank deems a particular builder unacceptable, it will be difficult to change their decision. We recommend running a shortlist of potential builders past the chosen bank before finalising the construction contract.
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It is not recommend cross-collateralising assets outside of the project to form part of the security pool due to the inherent risks in the delivery phase of the property development. We can restructure your finance and inject the required equity without tying all your assets with the project. Please speak to us before committing all your assets to a project as security.
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Property Development: An active approach involving the entire process from site acquisition to construction and sale or leasing. It requires hands-on management and expertise in various real estate aspects.
Property Investment: A passive approach focused on purchasing developed properties for rental income or capital appreciation, with less involvement in the development process.
Both approaches have unique advantages and challenges and depend on individual investment goals and risk tolerance.
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Generally speaking, for a major bank lender, the rate should be between 5.5% – 6.5%, depending on the risk profile of the transaction and the bank. The upfront establishment fee is generally 0.5 - 1%.
If you’re unable to bank with a major bank lender, expect a jump in interest rates, with private lenders offering rates around 10-13% and higher establishment fees.
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A successful property development team includes:
Architect: Designs the building and coordinates the project.
Builder: Manages the construction process.
Civil Engineer: Designs infrastructure and site works.
Structural Engineer: Ensures building stability and safety.
Hydraulic Engineer: Designs water management systems.
Electrical Engineer: Manages electrical systems design and installation.
Mechanical Engineer: Designs HVAC systems.
Traffic Engineer: Analyses and designs traffic flow.
Energy Engineer: Designs energy management systems.
Lawyer/Conveyancer: Ensures legal compliance.
Building Surveyors: Conducts site inspections and reviews building plans.
Land Surveyor: Conducts site surveys.
Real Estate Agent: Provides market insights and helps sell the property.
Town Planner: Ensures compliance with planning regulations.
Arborist: Assesses and manages site trees.
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To start in property development:
- Work with a team of experienced professionals for guidance.
- Gain knowledge and skills in real estate market trends, construction principles, financial management, and project management.
- Develop a network of contacts in the industry, including architects, builders, engineers, and financiers.
- Contact My Finance Consultants to receive expert guidance and support in your property development journey.